The latest data on the U.S. labor market and a likely interest-rate cut by the European Central Bank will be this week's highlights. Investors will also be watching the latest batch of earnings reports.
Bath & Body Works, CrowdStrike Holdings, and Hewlett Packard Enterprise release quarterly results on Tuesday, followed by Brown-Forman, Campbell Soup, and Lululemon Athletica on Wednesday. DocuSign, J.M. Smucker, and NIO report on Thursday.
The Bureau of Labor Statistics will publish April employment data on Friday. Economists' consensus estimate is for growth of 180,000 nonfarm payrolls, which would be 5,000 more than in March. On Tuesday, the Job Openings and Labor Turnover Survey is forecast to show about 8.4 million job openings on the last business day of March, versus roughly 8.5 million a month earlier.
In contrast with an on-hold Federal Reserve, the European Central Bank is widely expected to lower its benchmark interest rate target on Thursday. A quarter-point cut would take it to 3.75%.
Monday 6/3
The Institute for Supply Management releases its Manufacturing Purchasing Managers' Index for May. Consensus estimate is for a 49.6 reading, slightly higher than April's 49.2.
The Census Bureau reports construction spending data for April. Economists forecast a 0.25% month-over-month increase in construction spending to a seasonally adjusted annual rate of $2.1 trillion.
Tuesday 6/4
Bath & Body Works, CrowdStrike, Ferguson, Hewlett Packard, and PVH report quarterly results.
The Bureau of Labor Statistics releases the Job Openings and Labor Turnover Survey. Expectations are for 8.38 million job openings on the last business day of April, about 100,000 less than in March. Job openings are well off their peak of 12.2 million from March 2022, but still above prepandemic levels.
Wednesday 6/5
Brown-Forman, Campbell Soup, Dollar Tree, and Lululemon announce earnings.
ADP releases its National Employment Report for May. The consensus call is for a 172,500 increase in private-sector employment, following a 192,000 gain in April.
The ISM releases its Services PMI for May. Economists forecast a 50.8 reading, 1.4 points more than in April.
Thursday 6/6
DocuSign, J.M. Smucker, NIO, and Samsara release quarterly results.
The European Central Bank announces its monetary-policy decision. The ECB is widely expected to cut its key short-term interest rate by a quarter of a percentage point to 3.75%. The ECB would be the second major global central bank to cut interest rates following the Swiss National Bank's rate cut in late March. The policy paths of Europe's central banks are seen diverging from the Fed's, which isn't expected to cut interest rates until this fall or later.
Friday 6/7
The BLS releases the jobs report for May. Economists forecast an increase of 180,000 in nonfarm payrolls, 5,000 more than in April. The unemployment rate is expected to remain unchanged at 3.9%. Jobs growth has slowed to an average monthly increase of 245,500 this year, from a blistering 314,208 the last two years, but is still above historical trends.